One hundred years ago today, our country gave birth to the current income tax code. Here are some interesting facts about how this is concept with humble beginnings has turned into the monster it has become.
- The first income tax rate was 1% on income up to $20,000 and with a top bracket on income up over $500,000 (in 1913 dollars).
- The original tax code was 400 pages and in 2012 it was almost 74,000 pages.
- Income tax withholdings were not allowed until almost 30 years later.
- In 1920, only $5.4 billion was collected and $4.9 trillion is expected to be collected in 2014 (which is $4,900 billion or 907 times as much – not adjusted for dollars).
I believe it is safe to say that this simple idea has turned into an ugly monster that is today the source of most political disagreements and factions. The current tax system has spawned an attitude of greed, turning entrepreneurs into criminals and financial ruin for others who have become the pry of this insatiable monster.
Join me in a centennial celebration of this glorious day, or maybe NOT!